Vedanta Group Plans $20 Billion Investment in India Over Next 4 Years, Says Anil Agarwal

Vedanta Group, the multinational conglomerate with interests in mining and metals, is planning to invest $20 billion across its businesses in India over the next four years, according to Chairman Anil Agarwal. The investment will focus on a range of sectors, including technology, electronics, and glass, with the aim of expanding the company's footprint and fostering innovation.

Speaking at a company event, Agarwal highlighted the importance of semi-conductors and glass for the future of technology, noting that these materials are essential for manufacturing smartphone and laptop screens. Vedanta has land in Gujarat for a semiconductor plant and is actively seeking a strong partner for the project. In terms of glass, the group is already manufacturing abroad but is considering building capacity in India.

When asked about the potential sale of the steel business, which was previously rumored to be sold by March, Agarwal said that the sale would depend on finding the right buyer at the right price. "We are committed... if we get the right price to divest it," he stated, adding that if they do not find a suitable offer, the group will continue to operate the business itself. He assured that the steel business is profitable and has a dedicated workforce to keep it running.

Addressing concerns about the company's debt position, Agarwal mentioned that Vedanta's current debt stands at about $12 billion, which he described as manageable. He stressed that the group has never defaulted on its debt repayment obligations, and that starting each of Vedanta's businesses from scratch would require significant investment.

Agarwal, a London-based billionaire originally from Bihar, emphasized the need for India to tap into its mineral resources, noting that every developed economy has benefited from exploiting minerals. He expressed concern over environmental apprehensions related to mining in India, indicating that these could hamper progress. He also urged policymakers to create a supportive environment for entrepreneurs after the upcoming elections.

Vedanta is also expanding its philanthropic efforts. The company aims to increase the number of Nand Ghars, its initiative to support children's nutrition in rural areas, from 6,000 to 25,000 over the next two years. The goal is to provide services to over 7 crore children and 2 crore women.

Additionally, Agarwal hinted at the possibility of Vedanta venturing into the entertainment sector but did not provide specific details on the timeline or level of investment. He noted that successful companies often diversify into education, healthcare, sports, and entertainment, although he acknowledged that he does not have much experience in the entertainment industry.

BS